Bahrain’s Arab Banking Corporation (Bank ABC) completed its acquisition of BLOM Bank Egypt, last Thursday, for $480m, after negotiations that began in August 2020.
The acquisition contract addressed all cash and in-kind assets, as well as customer accounts.
BLOM Bank Egypt employees are expecting the arrival of a Bank ABC delegation who will review the bank’s work system. Intensive meetings are scheduled with the bank’s staff in the coming days, with BLOM Bank Egypt operations to undergo rebranding in the near future.
BLOM Bank Egypt was a commercial bank affiliated to the BLOM Bank Group. It began operating in Egypt in 2005, and its paid-up capital amounted to EGP 2bn.
It provides a range of banking and financial services through 41 branches across the country, including in: Greater Cairo; Alexandria; Hurghada; Sharm El-Sheikh; Damietta; Port Said; Mansoura; Ismailia; Tanta; Suez; Daqahleya; and Minya.
BLOM Bank Egypt’s business results revealed that it achieved profits amounting to about EGP 630.590m by the end of September 2020, compared to about EGP 746.451m at the end of September 2019.
The bank’s profits before taxes amounted to EGP 815.668m at the end of September 2020, compared to EGP 978.678m at the end of September 2019.
The Bahraini banking group, established in 1980, is one of the leading banks in the region for financing export operations, and trade and companies. It also provides free management services for financial assets, currency balances and Islamic banking products.
The group achieved profits of $191m the end of September 2020, compared to $210m in 2019. Allocations for expected credit losses during the first nine months (9M) of 2020 are projected at $234m, resulting in a net loss of $56m.
Bank ABC’s assets reached $29.5bn at the end of September 2020, with loans amounting to $14.9bn, while the volume of deposits reached $20.4bn compared to $ 21bn at the end of 2019.
According to its website, Bank ABC in Egypt has a network of 28 branches in major cities.
In August 2020, BLOM Bank announced that it was considering selling its stake in its Egypt operations. The move has been attributed to the severe crisis in Lebanon, given the need for banks in the country to strengthen their parent centres.
The bank affirmed its pride in BLOM Bank Egypt and its achievements, results and growth over the years. BLOM Bank Group’s Egypt operations are its largest asset outside Lebanon, and a major tributary to its growth in the region and globally. These achievements would not have been achieved without the efforts and expertise of its employees, it noted.
BLOM Bank pointed out that the decision comes in light of the current situation in Beirut, and the Banque du Liban decision No 13129 of 11/4/2019 regarding the commitment of banks to increase their capital.
Emirates NBD held preliminary discussions with BLOM Bank on the possibility of acquiring the latter’s Egypt operations, however, it retracted its interest leaving the door open for Bank ABC.
BLOM Bank recently revealed that it had entered into exclusive discussions with Bank ABC to sell its 99.42% share of the total issued capital in BLOM Bank Egypt.
Before ending the deal, BLOM Bank Egypt completed amending the contracts for 1,000 employees, in compliance with the Central Bank of Egypt (CBE) decision to protect workers’ rights before completing the sale.
The employee wage structure was amended, and the contract parts that were changed were fixed in line with the wage structure for employees at other banks operating in the Egyptian market.
© 2021 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).
